Headquarters of the Internal Revenue Service in Washington, D.C. / Jon Elswick, AP

by Kevin McCoy, USA TODAY

by Kevin McCoy, USA TODAY

The IRS has failed to provide swift and effective assistance to victims of identity theft even as the number of crimes continues to soar, according to a federal report issued Wednesday.

Although former IRS commissioner Douglas Shulman in 2008 vowed to create a "seamless" process to aid identity theft victims, the agency's actual response falls short, according to the National Taxpayer Advocate's annual report to Congress.

The issue focuses on IRS response to taxpayers whose identities - and tax refunds - are stolen by thieves who have gained access to the victim's Social Security numbers and other identifying information.

"Victims who come to the IRS for assistance today will routinely need to speak with multiple employees and wait more than six months to have their issues resolved," said the report by Nina Olson, whose agency aids taxpayers with IRS-related problems and issues.

Potential problems raised by the report - and challenged by the IRS - include:

-- Instead of a centralized approach using its four-year-old Identity Protection Specialized Unit, the IRS handles identity theft complaints in 21 different units, "many with their own rules and procedures."

-- Although the tax agency has created a special Identity Protection Personal Identification Number to guard against the problem, it does not cover all victims.

-- The IRS Taxpayer Protection Unit, created to handle calls from filers whose tax returns were flagged for possible fraud, may not be sufficiently staffed to handle a high volume of calls from victimized taxpayers.

In federal fiscal year 2012, the report shows the IRS Identity Protection Specialized Unit received 449,809 cases, up nearly 80% from the 253,051 received the previous year.

Similarly, the Taxpayer Advocate Service headed by Olson reported a 60% jump during the same two-year period in cases from taxpayers seeking help with identity-theft cases.

"This is an incredibly large issue that is hitting the small and the large," said Martin Press, a Fort Lauderdale tax attorney scheduled to head an American Bar Association tax section panel discussion on identity theft later this month.

Olson's report recommended that the IRS use the Identity Protection Specialized Unit as a centralized "traffic cop" that coordinates handling of all identity theft cases the tax agency receives. The unit should be given adequate staffing, the report said.

Additionally, the IRS should issue identity protection personal identification numbers year round, as soon as the identities and addresses of the rightful Social Security number owner are determined, the report recommended.

Responding to the report, the IRS said it has made identity theft and victim assistance top priorities. The often-complex cases are routed to the office best-equipped to handle individual specifics, the agency said.

"Although we cannot stop all identity theft, our efforts in filing season 2012 provide a solid foundation upon which we will continue to build and improve," the IRS said.